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A five-stage approach to help reduce emissions
Many companies have set net-zero targets using the Science Based Targets initiative ( SBTi ), which requires the inclusion of Scope 3 emissions , but they may find it challenging to move forward . Based on Deloitte ’ s experience working with multiple companies to address emissions , combined with insights from CPOs and academic studies , we have developed a path for a five-stage journey . This approach seeks to drive efficiency while accelerating impact for procurement leaders .
1 . Assess baseline opportunity
Understanding your company ’ s emissions baseline starts with identifying the data you have , which will help influence the greenhouse gas ( GHG ) protocol analysis method you use to measure emissions .
The GHG protocol provides multiple options for analysis methods . The spend-based method , which calculates the value of goods and services , is the least accurate . Supplier-specific , which calculates based on product-level emissions data of goods and services , is the most accurate . A hybrid model , meanwhile , can strike a balance between ease of implementation and accuracy .
Shifting to a more accurate method can bring incremental value to your company . It allows you to create supplier segments or groups that inform a highlevel engagement approach , such as a focus on the supplier-wide base , specific segments , or even specific suppliers .
2 . Align goals , strategies , and investments
Many companies have announced their emission-reduction goals and aligned their goals with the SBTi . Next , they need to identify a strategy to achieve them - including how to galvanize suppliers to act . Some companies choose to
collaborate with suppliers , while others delegate responsibility for achieving emissions reductions .
Often there is no one-size-fits-all approach . A hybrid approach may work better , with suppliers mapped based on their business impact and other criteria . You can then develop specific strategies for each quadrant of a matrix , such as Deloitte ’ s supplier collaboration matrix below .
3 . Evaluate initiatives and develop a roadmap
A clear roadmap can help you navigate the evolving complexity of regulations , stakeholder expectations , and supply chain disruption . As part of that roadmap , identify the best carbon abatement strategy to partner on with your suppliers - selecting parameters that are most important to your goals and using a methodology that prioritizes initiatives and helps move the needle faster . Change management will be key , enabling a smoother mindset shift for internal resources and external stakeholders , including suppliers .
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